So the guy just lost his job, and now you want to make him feel even more inadequate?
Didn’t know Procrustus was the OP.
Not sure how universal this is, but when my husband took early retirement and we went on COBRA, it included dental and vision benefits. We may have had a choice as to whether or not to include them – I really don’t remember.
I do know that when my dentist said I’d need a crown soon, but I could wait a year if I wanted to, I told him to schedule it ASAP before my coverage ran out. We also got new glasses that year.
Thanks. I’m confused about what the benefit of COBRA is specifically. If it allows an ex-employee to get continued health insurance through the employer, but paying all the premiums himself, how is that any better or different than the employee shopping for health insurance on his own - unless the perk is that the ex-employee’s data is already all on file and so he is spared the hassle of signing up anew for an unfamiliar insurance plan?
That’s pretty much it. You’re continuing with the insurance you have now, with doctors that are in-network, etc., and not having to go through the hoops of shopping for coverage on your own.
The COBRA law (1985) predates the Affordable Care Act (2010); prior to the passage of the ACA, private insurers did offer “individual” coverage, but the insurers could choose to not offer a policy to a person – this typically would happen if that person had a pre-existing condition, or a history of medical issues. In other words, if you were, say, diabetic, or had a history of cancer, you might not have been able to buy a policy on your own, because you wouldn’t have been able to find an insurer which would be willing to sell you one. One of the provisions of the ACA was preventing insurers from discriminating that way; thus, prior to the ACA, COBRA was even more important/beneficial to such people.
You’ll want to see what it’ll cost you to continue your current coverage through COBRA, versus what your options are in the Marketplace. It may well be that your current coverage is better (i.e., lower out-of-pocket max, lower deductible, better network) than any Individual policy you could get at a similar cost.
Also, as I mentioned earlier, and as at least one other poster has mentioned, you will also want to see if you will qualify for a subsidy/tax credit that would lower the cost of an Individual policy; those subsidies aren’t available to you if you’re using COBRA.
FWIW, when I was having to buy my own insurance, after being laid off in early 2015, the monthly payment I had to make to my old employer, through COBRA, was pretty comparable to what I had to pay, the following year, for a Silver-tier Individual policy from a major insurer (BCBS).
I should also add that, depending on where you live, your range of choices on the Marketplace may be limited. You likely have coverage today from a reasonably reputable insurer, but it’s possible that you can’t get coverage from a company of similar quality on your own.
Insurance companies choose which states they’re going to offer Individual policies in, and even which counties within a state. There are many areas which only have one or two insurers offering coverage.
Thanks, that makes sense. I don’t know how hypothetical your numbers were, but are there really insurance plans on the open market that have the good terms you described here? I looked on the ACA website and even the cheapest ones were $300 per month for a $9,000 MOOP.
Did you enter your expected income to get the ACA information? ACA premiums are hugely dependent on your income. If you don’t make much they are very cheap, like only $3 a month. But as your income increases, the premium can get into the hundreds, maybe even thousands of dollars per month.
This is why I just don’t understand the situation in the US where most places don’t mandate a notice period. It doesn’t work well for anyone - employer or employee. I had a couple of people leave recently, and even with one month’s notice, it’s taken me a lot longer than that to recruit their replacements. Only the lowest paid, non-salaried roles here have less than one month’s notice.
When I was laid off, I started taking interviews for jobs I did not actually want. After 12 years you have no recent interview experience and it is a stressful situation.
It seems a bit unfair to the companies but gaining confidence in an interview situation while knowing I was never going to take the job really helped me when the right job came up, and I aced the interview.
Sorry to hear that.
Now is the time to re-build yourself and go after your dream job. I mean GET AFTER THAT BI#CH. Learning new skills like PMP or new programming languages is basically free these days. Use youtube to learn how to answer Amazon’s 16 Leadership principles questions (“tell us about a a time when…”) and use STAR type answers to respond to each of them. If you send lukewarm cover letters you will get lukewarm responses, or ignored. (I just crushed a final interview but were told that there was a hiring freeze, but they want me when the freeze is lifted) Good luck!
Thanks. I’m just a few classes away from finishing an accelerated-program MBA.
Adding to what @kenobi_65 said, many people in this situation prefer COBRA because they can keep their doctor. Such as if you/spouse are in the middle of a pregnancy, or being treated for a condition. Staying with all the same doctors and other benefits like pharmacy can bring a little predictability and stability to an unstable situation of being between jobs, especially if the cost is comparable to Marketplace plans.
I did. Even when I quoted “$0” as my hypothetical income for next year, the minimum-premium health insurance plan available here in Texas was still $307 per month for a $9,100 MOOP. Wonder if Texas is simply a bad state for insurance.
Where are you seeing the $3 a month things? I’d love to find them.
I think it’s because you entered $0 income. I just looked for a Texas estimate and with $0 income there was no subsidy. With a 20K income, there was up to a $651 /month tax credit . There were Silver plans under $100/month and Bronze plans for less. Some had $0 premium. Try again with an estimate of your income - you ought to at least get unemployment.
Yes, what @doreen said. The ACA is weird, in that there is a minimum income to qualify for a subsidy. In California for a household of one person, the minimum income is $19,000 per year. If you make less than that, you’re supposed to go on your state’s version of Medicaid.
Unless you’ve been paid unemployment sometime during the year. Then, according to a recent change in the ACA, you are eligible for a subsidy no matter how low your income.
Kenobi already covered this, but COBRA rules predate the ACA by decades. At the time COBRA was implemented, it was often the only insurance available to a newly-unemployed worker, especially one with a pre-existing health condition.
Now, it’s just another option to shop. One where you already know which doctors are covered, what the rules are, etc.
I want to go back to the non-employment advice, though. Being fired can be a huge blow to your self esteem, and potentially cuts a big hole in your social life.
First, it’s not you, it’s them. Even if you weren’t producing a lot at work, the odds are it’s because you were poorly managed, and your employer wasn’t leveraging your skills. More likely, the issue is that the economy and/or pandemic fallout had hurt your employer for reasons that have nothing to do with you, and they had to cut back somewhere.
Second, if you are at all social, this is a time to reach out to friends and family, and to do other social activities. Hug your friends. Visit that disabled cousin that you’ve been too busy to see. Go play bridge at a daytime game aimed at retirees. If you are less social, take some nice hikes when the trails aren’t too crowded. Repair stuff around your home. Yes, you need to do stuff to find a new job, but you also need to do stuff that nourishes your soul, and that you enjoy. Take the initiative to do that.
Best wishes.
This, exactly. The ACA subsidies are intended for people with modest-to-moderate incomes, but who make too much money to qualify for Medicaid coverage.
You may want to look into what your maximum income would be for qualifying for Medicaid in Texas, and then enter an amount just higher than that in the ACA subsidy calculator.
In addition to @kenobi_65 's excellent post, COBRA let’s you purchase insurance at the group rate your company negotiated. If your company is large and negotiated a good rate, this might be better than what you could get as a individual.